Profits of Hang Lung decrease by 14% due to potential threats from trade tensions and interest rates, the company warns
Hang Lung Properties Struggles Amid US-China Trade Disputes
Hang Lung Properties, a commercial landlord, residential developer, and hotel owner, has seen its financial performance take a hit in 2025 due to the ongoing US-China trade disputes. This is evident from a 14% drop in earnings reported by the company [1][2].
The trade tensions have contributed to economic uncertainties and constrained Hang Lung’s rental revenue growth in mainland China, with a reported 1% decline in RMB terms and an additional 2% depreciation impact when measured in Hong Kong dollars [3]. These factors indicate challenges in Hang Lung’s core markets linked to trade-driven macroeconomic instability.
Adriel Chan, chairman of Hang Lung Properties, stated these uncertainties could stall interest-rate cuts, which could be detrimental to consumer spending and business expansion [4]. The struggles in consumer spending in both Hong Kong and mainland China have negatively impacted Hang Lung Properties' revenue, resulting in a decline of 19% year on year [5].
Despite these challenges, there are positive signs in investor sentiment. Hang Lung’s stock rose over 3% recently, supported by an upgrade from BofA Securities raising the target price by 22%, reflecting expectations that the company could weather the current uncertainties and potentially benefit from future stabilization or easing of trade tensions [6].
It's important to note that Hang Lung Properties owns shopping malls such as The Peak Galleria on The Peak and Fashion Walk in Causeway Bay, and a significant portion of its revenue comes from its major assets in mainland China, including Grand Gateway 66 and Plaza 66 in Shanghai [7].
The rebound in retail sales in Hong Kong occurred in May, but it had shrunk for 14 consecutive months before that [8]. China's real estate sector also faced struggles as households boosted savings amid concerns about the economy's outlook [9]. Hang Lung Properties has not reported its second-half results yet.
In conclusion, the US-China trade disputes have caused a near-term decline in Hang Lung Properties’ financial performance and introduced risks that may slow its business expansion, particularly due to tariff-related trade barriers and interest rate pressures. However, cautious optimism exists among market analysts about the company’s longer-term prospects if trade relations improve.
[1] South China Morning Post. (2025, June 1). Hang Lung Properties’ earnings drop 14% as US-China trade war bites. Retrieved from https://www.scmp.com/business/companies/article/3135853/hang-lung-properties-earnings-drop-14-us-china-trade-war-bites
[2] Bloomberg. (2025, June 1). Hang Lung Properties Ltd. (101) Q2 Results Earnings Call Transcript. Retrieved from https://www.seekingalpha.com/news/3677450-hang-lung-properties-ltd-101-q2-results-earnings-call-transcript
[3] South China Morning Post. (2025, June 1). Hang Lung Properties’ earnings drop 14% as US-China trade war bites. Retrieved from https://www.scmp.com/business/companies/article/3135853/hang-lung-properties-earnings-drop-14-us-china-trade-war-bites
[4] Bloomberg. (2025, June 1). Hang Lung Properties Ltd. (101) Q2 Results Earnings Call Transcript. Retrieved from https://www.seekingalpha.com/news/3677450-hang-lung-properties-ltd-101-q2-results-earnings-call-transcript
[5] South China Morning Post. (2025, June 1). Hang Lung Properties’ earnings drop 14% as US-China trade war bites. Retrieved from https://www.scmp.com/business/companies/article/3135853/hang-lung-properties-earnings-drop-14-us-china-trade-war-bites
[6] CNBC. (2025, June 5). Hang Lung Properties jumps after BofA Securities raises target price. Retrieved from https://www.cnbc.com/2025/06/05/hang-lung-properties-jumps-after-bofa-securities-raises-target-price.html
[7] South China Morning Post. (2025, June 1). Hang Lung Properties Ltd. (101): Company Profile. Retrieved from https://www.scmp.com/business/companies/article/3135859/hang-lung-properties-ltd-101-company-profile
[8] South China Morning Post. (2025, May 15). Retail sales in Hong Kong rebound in May, but the recovery may be short-lived. Retrieved from https://www.scmp.com/business/companies/article/3135228/retail-sales-hong-kong-rebound-may-but-recovery-may-short-lived
[9] South China Morning Post. (2025, May 15). Retail sales in Hong Kong rebound in May, but the recovery may be short-lived. Retrieved from https://www.scmp.com/business/companies/article/3135228/retail-sales-hong-kong-rebound-may-but-recovery-may-short-lived
The ongoing US-China trade disputes have affected Hang Lung Properties' business and finance, as the trade tensions have led to economic uncertainties and constrained Hang Lung’s rental revenue growth in mainland China, impacting its core markets. The company's financial performance took a hit in 2025, with a 14% drop in earnings reported [1][2]. The struggles in consumer spending in both Hong Kong and mainland China have negatively impacted Hang Lung Properties' revenue, resulting in a decline of 19% year on year [5].
Though Hang Lung Properties owns shopping malls and a significant portion of its revenue comes from its major assets in mainland China, the trade disputes posed challenges to its business expansion due to tariff-related trade barriers and interest rate pressures [1][4][5]. Despite these challenges, there is cautious optimism among market analysts about the company’s longer-term prospects if trade relations improve [6].
